The Continued Fall of an Icon
Eastman Kodak, once a powerhouse and still a household name, has hired the help of law firm Jones Day to explore bankruptcy options. The company states that it is simply exploring all options and that no bankruptcy is imminent. However, when you hire a law firm that is known for its restructuring practices, it tends to raise questions.
Eastman Kodak was founded over 131 years ago and used to dominate markets with its film products. Things have changed though (when is the last time you have bought film? SB for anyone who can actually remember) and Kodak has fallen on hard times as it has tried to reinvent itself as a producer of inkjet printers and commercial printing.
The company's latest plan to sell its intellectual property has stalled and the injection of cash flow that it would have provided is much needed at this point at the stock price has plunged over 50%. Its sad to say, but after limping along for more than a decade, Kodak might finally be down for the count.
The last time I used film was in 2000 when I visited Wuyi mountains. I still remember going to the local store to get them printed.
One of my first jobs was the courrier who picked up and delivered the 24 hour photos. The company I worked for went out of business because Kodak's business became very slow when digital cameras were introduced....man, I should have shorted them then.
haha i actually did buy a kodak disposable camera on friday to take out at night (rather than having my dig camera stolen, or my likely lost). Was quite the novelty at the party, everyone loves spinning the dial after taking the picture. Getting the pics developed will be like waiting for xmas presents to be opened.. that is if I can find a place to get them developed...? (luckily I live in buenos aires, which in some ways still lives in the dark ages, so shouldnt be a problem)
There are some interesting business school cases on Eastman Kodak. They had a dominant market-leading position in the photography space and it was an amazing cash-rich business for them... The company actually led in every facet of photography innovation as well and was the leader in digital photography even as far back as the 80s. The CEO at the time wasn't very bullish on digital photography and shuttered Kodak's digital photography unit because he didn't want to cannabalize their main business... The idea was that photography was special and people would always want the sentimental feel of physical photographs... One management mistake eventually spelt doom for one of America's most storied companies... Kind of sad and hopefully MBAs learned from this mistake.
This is the best thing that ever happened to me. My father, both grandfathers, a few uncles, and some other relatives all worked in the factories there. I would have definitely mindlessly followed them into the chemical plants if I was not told that the whole place was a sinking ship. Interestingly, no one seems to blame the Japanese for making cheaper products, opting to point the fingers at management instead. There was the"Kodak Way" and then there was the "highway". Regardless of how nicely things have turned out for me, it is sad to see what has become of my hometown and the former American giants that once did business there.
nice cramer stock
Some purists still use film. There are some occasions you probably want captured on film like weddings or births. Film is more tangible than pixels on a screen. It will just be hard to get them developed.
This won't be the last time that a company stuck around for too long like an awkward party guest who refuses to play along. History is full of these companies that come out swinging, only to lose steam in the final rounds(Any search engine company from the 90's except Google, MySpace, Quizno's).
I grew up near their HQ in Rochester and a few of my relatives worked there. It's sad to see, and it's only going to get worse for them. The only people I know that actively use film are older, technologically-illiterate people. I doubt Kodak will survive long-term unless they can somehow get a good share of a younger customer base.
Kind of sad to see. Growing up in the 80's, Kodak's were the standard, with the occasional Polaroid around for the impatient. That company pretty much built Rochester as well. Its just kind of amazing how they watched digital cameras swoop in and they just stood around. Maybe they thought "serious" photography would never go digital? Its hard to comprehend really.
I don't see how they could come back either. The brand is dead. You can pry my Canon DLSR from my cold, dead hands. Love that thing.
It has been embarrassing to watch management flip flop from one product to the next. I stopped keeping track a few years ago, but last check was they were trying to market middle income digital printers with cheaper ink cartridges. What the fuck man, that is just retarded.
I was thinking about writing a book on how Kodak reshaped business patterns in western New York after World War II, and then how it left Rochester in shambles during/after its downfall. Unfortunately most of my sources are deceased and the documentation of these kinds of things is poorly kept. Every time I go back, the city looks more and more like Detroit.
The Fall of Carl Icahn, how a failed bid for Clorox ruined a man and the film industry
The Continued Fall of a Nikon, the story of a dropped camera
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